1. Significant accounting policies:

1. Basis of presentation:

The consolidated financial statements included herein have been prepared by the Company, without an audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-KSB for the year ended December 31, 2002 and filed with the Securities and Exchange Commission.

In the opinion of the Company's management, these unaudited consolidated financial statements include all adjustments, consisting solely of normal recurring adjustments, necessary in order to present fairly the Company's consolidated financial position as of March 31, 2003 and the results of their operations and their cash flows for the three months ended March 31, 2003 and 2002. The results of operations for an interim period are not necessarily indicative of the results to be attained in any other fiscal period.

2. Business Combination:

During January, 2003, the Company began operations when it acquired all of the issued and outstanding shares of Elegant Concrete Technologies, Inc. ("ECTI") in exchange for 500,000 shares of its common stock. For purposes of the business combination, the 500,000 shares issued have been valued at approximately $260,000.

The acquisition gave rise to goodwill amounting to approximately $295,000. The Company does not believe that such goodwill is deductible for income tax purposes.

ECTI commenced operations during April 2002 as a niche contractor that resurfaces and decorates concrete for commercial and residential properties located in the United States. ECTI offers many decorative concrete techniques, such as stamping, stenciling, engraving and application of acid stains. In these applications a permanent pattern is engraved or stamped into new or existing concrete. The classical rich beauty of cobblestone, marble, curved brick or tile is achieved with new or existing concrete at a lower cost than brick or other hard surface products.

The condensed balance sheet of ECTI as of December 31, 2002 follows:

Due from officer/shareholder...................................$ 77,917
Other current assets..............................................4,597
                                                                  -----
Total current assets.............................................82,514
Machinery and equipment net......................................27,018
                                                                 ------
Total assets..................................................$ 109,532
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Accounts payable and accrued expenses.........................$ 127,662
Other current liabilities.........................................1,500
                                                                  -----
Total current liabilities.......................................129,162
Stockholders' equity deficiency.................................(19,630)
                                                                 ------
Total liabilities and stockholders' equity deficiency...........109,532
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As part of the Agreement and Plan of Reorganization between the Company and ECTI, Company stockholders delivered 208,755 shares company Common Stock to the company.

Pro-forma data:

Pro-forma data for the three month period ended March 31, 2002 as though the business combination had been completed on January 1, 2002 is as follows:

Contract revenue                                              $      -

Costs and expenses:                                              1,634
                                                           ------------

Loss before income taxes                                       (1,634)

Income taxes (benefit)                                               -
                                                           ------------

Net loss                                                       (1,634)
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Basic and Diluted                                           $   (0.00)
                                                           ============

AVERAGE OUTSTANDING SHARES
Basic and Diluted                                            9,940,000
                                                           ============

3. Debt and equity financings:

Effective January 2003, ECTI entered into a temporary financing agreement. Under the terms of the six month financing agreement, ECTI has the ability to borrow up to $1,000,000 in the form of a revolving line of credit. The borrowings are collateralized by all of ECTI's assets. The line of credit bears a variable interest rate ranging from the prime rate plus .75% to the prime rate plus 1.50%.

On February 25, 2003, the Company announced the signing of a non-binding Letter of Intent (LOI) with Tianqi Real Estate Co., LTD (Tianqi) of Ningbo, China for the purpose of expanding its operations to South East Asia. The LOI stipulates that Tianqi will make an investment of up to $1 million into ECTI. The LOI further stipulates that, Tianqi will have exclusive contractor rights to apply the ETCI processes in China and sections of Taiwan and that ECTI is to provide Tianqi with training and support on all of ECTI's application processes. Subsequent to March 31, 2003, Tianqi invested $500,000 in the Company in exchange for 500,000 shares of common stock which are to be issued.

4. Stock option plan:

During the Quarter ended March 31, 2003, the Company enacted its 2003 Joint Incentive and Non-qualified Stock Option plan to become effective upon shareholder approval. Under the terms of the Plan, the amount of shares of common stock issued upon exercise of options granted can not exceed 300,000 shares.

On January 6, 2003, the Company consummated the acquisition (the "Acquisition") of all of the outstanding shares of Elegant Concrete Technologies, Inc., a New York corporation ("Elegant"), pursuant to an Agreement and Plan of Reorganization (the "Agreement") among the Company, Elegant, and the shareholders of Elegant ("Shareholders").

5. Common Stock:

Elegant is a privately held corporation engaged in the business of engraving permanent patterns into existing concrete mostly for exterior floors and patios. The engraved patterns look like tile, but cost significantly less. Elegant was organized under the laws of the State of New York on April 3, 2002. It recorded approximately $200,000 in net sales from inception through December 31, 2002. Elegant began operations in the New York City metropolitan region during 2002, and plans to expand regionally throughout the country and abroad. Such expansion is based on the ability of Elegant to obtain the necessary financing; however there are no assurances that such financing can be obtained.

The Company delivered at the closing (the "Closing") of the Acquisition 500,000 restricted shares of its common stock in exchange for 166 2/3 shares of Elegant common stock, which represents all of the outstanding shares of common stock of Elegant, par value $1.00, in what was intended to be a tax-free reorganization. The Company made certain representations and warranties in the Agreement, which were confirmed by the officers and directors of the Company. The Company paid no separate consideration for such confirmation. Also pursuant to the Acquisition, the shareholders, directors and officers of the Company contributed 208,755 shares of common stock of the Company as capital. After the Acquisition, the Company had 994,000 shares of common stock issued and outstanding.

The Board of Directors and the Shareholders of the Company approved a name change to "Elegant Concrete, Inc." and forward stock split of the Company's common stock, par value $.001 per share ("Common Stock"), whereby each outstanding share of Common Stock was converted and changed into ten (10) shares of Common Stock. The Board of Directors approved the forward stock split on January 6, 2003, and such a split became effective on February 10, 2003. Stockholders of record received ten (10) shares of Common Stock for every one share of Common Stock which was held as of the record date. After the stock split, the Company had 9,940,000 shares of Common Stock issued and outstanding.

6. Statement of Cash Flows: